The "rules
of the game" in retail are continually changing. Shifts
in the economy, changes in consumer tastes, emerging technologies
and new business models can rapidly redefine winners and losers.
The ability of current players such as category killers, discounters,
luxury houses, etc. to anticipate these shifts is critical
to their survival and prosperity.

Despite changing rules and rapid industry
shifts, we have observed that most retail concepts go through
three distinct phases of growth.

Penetration
– The initial expansion phase is marked by an innovative
retail concept that grows through more stores, in more geographic
markets, with one common retail format while displacing
smaller, ineffectual competitors. Growth is asset-driven
fueled by comp growth and new store growth

Confrontation
– This phase is characterized by slowing growth as
all attractive trade areas are saturated and only a few
strong survivors with similar offerings battle for share.
Growth is customer-driven and the focus shifts towards more
complex, tailored offerings

Decline/Reinvention
– The process of "Retail Renewal" is on-going
as new players enter, redefine the market and begin the
Penetration phase anew. Continued success is driven by information
and investment in new ideas that may risk cannibalizing
the core

Leading retailers typically develop an
infrastructure, a set of business processes and a culture
that is geared toward winning a particular phase, but struggle
as the business transitions from one phase to the next.

Our Capabilities

Alliance has significant experience in
helping companies to win in all three phases of the retail
growth cycle by developing successful action plans for tasks
such as:

Market arena strategies

Alternative retail formats

Customer segmentation schemes

Product category expansion plans

Entry strategies for new geographies
and/or businesses

Strategic realignment processes

Understanding and buy-in from the
organization

Case Study

The leading office superstore retailer
focuses on market arena leadership to win the confrontation
phase Read
more